Finance charges can be assessed automatically on delinquent receivables based on setup options specified on the Finance Charge Setup, Finance Charge Cycle, System Options, Billing Profile, and Revenue Source pages. The finance charge processes generate two types of fees:
Flat fee - A one-time or periodic penalty fee
Interest - A variable fee which is calculated as a percentage of the outstanding amount and is charged periodically or at user defined intervals.
You can also suppress finance charges for a particular receivable. For summary receivables, the system automatically suppresses finance charges. On Customer Account Options, when the Suppress Auto Fin Charge is true, the Finance Charge job will suppress the automatic application of finance charges for the selected Customer Account. This indication is set to true automatically when the Bankruptcy indication is set to true, although the indication can be set back to false if desired.
The finance charge process consists of:
Setting-up of the characteristics of the fees that can be used in the finance charge process
Setting up the fees that apply on a system-wide level and on a billing profile level
Running the offline process that determines the amount of penalties and interest to be assessed to overdue receivables
This topic includes the following areas: